Testnet Coin Deemed Worthless Rises 165%

Crypto news: Goerli testnet is a cross-client network that uses proof of authority and is often used to run simulations before the mainnet launch. It is separate from the main Ethereum ledger and therefore merchants can transmit tokens from other chains to Goerli thanks to its cross-chain functionality. However, testnet ether in Goerli has experienced massive price volatility recently, despite the fact that it has zero real-world trading utility.

The rise of Goerli ETH

Trading was first conceptualized by LayerZero, a cross-chain platform – making it possible for the Ethereum mainnet and the Goerli testnet to trade and exchange the ether. The main ethos behind this was to create means by which developers could acquire ether for use on the testnet in a more user-friendly way than the typical methods of using faucets or approaching developers directly for coins.

On the other hand, detractors warned that monetizing a testnet’s native currency, which is intended to facilitate pre-production testing, would make the testnet less suited to the task for which it was created.

See more information: Check out the top 10 DeFi lending platforms of 2023

Mudit Gupta, chief information security officer at Polygon, took to Twitter to express his displeasure that the coin, which was supposed to be free, was trading at a specific price. It served us well,” he added.

Goerli ETH rises 165%

According to DexScreener, testnet ETH – which is symbolized as GETH (G for Goerli) – is trading around $0.46 at the time of writing. However, it is important to note that the altcoin initially started trading at $0.15 and quickly crossed the $1 price mark; reaching a high of $1.60 on Saturday.

The number of developers who are actively contributing to Goerli has increased significantly and therefore it is speculated that since GETH now acts in the same way as any other liquid token in the crypto market, the coins obtained from the faucet will be considered taxable income. A cryptocurrency faucet, required for blockchain testing, is used to distribute tokens that have no real-world value. They are built with the intention of allowing developers to test features without investing real money.

The price of Ethereum (ETH) in this crypto news has remained steady at $1,608, which currently represents a gain of 0.52% over the past 24 hours, while recording a decline of around 5.1% over the past seven days.

Also Read: Over 3 Billion HBAR Tokens Set to Unlock; Massive Hedera price drop ahead?

Pratik has been a crypto evangelist since 2016 and has been through almost everything crypto has to offer. Be it the ICO boom, the bear markets of 2018, Bitcoin halving so far – it has seen it all.

The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.

Leave a Comment